The Euro has rallied again during trading in early hours on Wednesday but has given back some of the gains. We continue to see a lot of resistance near the 1.0850 level, so that is obviously the next hurdle for the bullish traders out there to try to overcome. We cannot seem to be able to close above that level on a daily chart, so it’s not until then that I would be looking for a pop of any significance. As the United States is passing a stimulus measure, the question at this point is whether or not that’s going to favor the US dollar or not? Correlations have been smashed as of late so it’s a bit of a gas at this point. Nonetheless, it certainly looks as if there is a lot of stubborn resistance above that is certainly something that you should be paying attention to.
EUR/USD Video 26.03.20
Even if we do break above the 1.0850 level on a daily close, it seems very unlikely that we will be able to break above the 1.10 level easily. That would be the next area I would anticipate seeing sellers coming into the marketplace, so keep that in mind. I believe that the Euro is weaker against the US dollar for good reasons from a fundamental standpoint, as the European Union not only has to worry about the virus but quite frankly is a basket case financially anyway. At this point, I anticipate that we continue to the same thing that we have been able to do for some time now: fade each rally as it occurs.
This article was originally posted on FX Empire
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